The USD/CHF pair recovers some lost ground around 0.8985 amid a modest rebound in US Dollar (USD) during the early European session on Friday. Investors brace for the preliminary US S&P Global PMI reports, which will be released later on Friday. Also, the Federal Reserve's (Fed) Mary Daly and Philip Jefferson are set to speak later on the same day.

Fed officials in January agreed they would need to see inflation ease more before lowering interest rates further. Policymakers are concerned about the impact Trump's tariffs would have in making that happen, according to meeting minutes released Wednesday.

Fed Chair Jerome Powell said the bank was not "in a hurry" to cut the interest rate further, given significant uncertainty about where the economy might be headed. Analysts anticipate the US central bank will likely reduce its benchmark interest rate only once in 2025, with a big chance of no rate cuts at all. This, in turn, could lift the USD against the Swiss Franc (CHF).

Trump said on Wednesday he will announce new tariffs within the next month, adding lumber and forest products to previously announced plans to impose duties on imported cars, semiconductors and pharmaceuticals. Additionally, hopes for a ceasefire between Russia and Ukraine seem to have faded in the wake of intensifying Ukrainian drone attacks on Russian Oil pumping stations. Concerns about US President Donald Trump's trade tariffs and ongoing geopolitical tensions should lend support to the safe-haven currency like CHF.
USD/CHF rebounds to near 0.8985 in Friday's early European session.
Trump's trade tariffs and rising geopolitical tensions might boost the CHF and cap the upside for the pair.
The advanced US PMI data will be in the spotlight later on Friday.

Source: Fxstreet